It is tempting to believe that investors in the Chinese markets might have learnt a few lessons from the huge correction in the stock market this summer. Some have but many more seemingly have not.

The stock market is up 17.7 per cent from its trough in August. Responsible fund managers such as those at China Asset Management recommend clients look at solid blue-chips and companies that pay high dividends, rather than the most speculative plays and high-flying growth counters, giving rise to the hope that the equity market might be more stable in coming months. But earnings continue to deteriorate for a big part of “old China”.

Third-quarter results of almost 1,400 A-share companies listed before 2009 show non-financial sector earnings plunging 37 per cent compared with the same period a year ago in the worst showing since 2010, Credit Suisse notes. That suggests that if the sell-down was overdone, the subsequent recovery may also be overdone.